Rutgers cuts Mike Rice's settlement by more than half

Apr. 18, 2013
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Rutgers University President Robert Barchi, right, sits with Rutgers' vice president of public affairs, Peter J. McDonough, Jr., at the Statehouse in Trenton, N.J., on Thursday as Barchi waits to testify to the New Jersey Assembly Budget Committee. Barchi was expected to face questions about big payouts to three university officials ousted in the basketball coaching scandal that brought unwanted national attention to the New Brunswick campus. / Mel Evans, Associated Press

by Bob Jordan, USA TODAY Sports

by Bob Jordan, USA TODAY Sports

TRENTON, N.J. - Rutgers University President Robert Barchi says he wants to bring an end to the school's practice of paying huge settlements to exiting employees. He started Thursday night with disgraced basketball coach Mike Rice.

The school and Rice agreed to cutting the coach's settlement payment to $475,000, less than half of the $1.1 million for termination as stipulated in his contract.

Barchi earlier in the day had testified before the Assembly Budget Committee and vowed to fight Rice's claim to the full amount. Less than three hours later, the school announced the revised terms.

"Tonight's agreement is in the best interests of the university, and I am pleased this issue has been resolved," Barchi said.

Rice could not be reached for comment.

Barchi told lawmakers at the hearing that he was willing to challenge the payout because the contract was breached. "Let me assure you that I signed no settlement whatsoever with Mr. Rice."

"My personal position - I'm not a lawyer - is that the university was damaged by his actions. My personal position is that his conduct was unethical, not acceptable to the university's standards, and frankly I'll have that discussion in court if I have to. I'm going to be pretty hard to budget," Barchi said.

Barchi on April 5 gave little hope that the school could avoid paying the full settlement when he told reporters, "The coach was not fired for cause. The outside says that could not be done."

Rice's tenure at the school ended after video surfaced of him throwing basketballs at players and screaming profanities and slurs during practices.

Rice's boss, athletic director Tim Pernetti, resigned and was given a $1.2 million payout, and general counsel John Wolf will receive a $420,000 exit package when he leaves later this year. Wolf advised the school to suspend Rice last fall instead of firing him then.

Barchi said reports that Wolf would also receive free tickets to Rutgers football games in the future are not accurate.

"He would have the opportunity to purchase his tickets, the same seats (he had the past 30 years). Not that we were giving him any tickets," Barchi said.

Assemblywoman Bonnie Watson Coleman, D-Mercer, said she was heartened by Barchi's testimony but added, "I remain very concerned that Rutgers has doled out so much money to ousted top officials. Consider that based on the in-state tuition and fees listed on the Rutgers website, for every $1 million spent on these deals, the university could have provided 76 students with a scholarship covering full tuition and fees for one year. Rutgers needs to do better."